The textile sector in India contributes more than five per cent to India’s GDP and 14 per cent to overall index of industrial production. The sector is expanding even though it has been facing numerous challenges. The sector comprises small-scale, medium-scale, large-scale, non-integrated, spinning, weaving, finishing, and apparel-making firms and enterprises.

The textile and apparel industry is broadly divided into three segments. One, yarn and fiber (including natural and manmade), mainly made up of cotton and jute; second, processed fabrics (including woolen textiles, silk textiles, jute textiles, cotton textiles and technical textiles); and third readymade garments and apparel.

The unorganized sector includes handlooms, power looms, hosiery, knitting, readymade garments, khadi, carpets and handicraft manufacturing units. The organized mill sector comprises spinning mills and composite mills where spinning, weaving, and processing activities happen.

Exports of Indian textile and apparel products have been growing with the EU and the US as major export destinations. The basic strength of the industry in India is its strong production base of a wide range of natural fibers like cotton, jute, silk and wool to synthetic or manmade fibers like polyester, viscose, nylon and acrylic.

Overall production of manmade filament yarn has declined over the last few years, though production of viscose filament yarn and nylon filament yarn has increased correspondingly.